Having personal insurance, especially when it comes to your vehicle, is important because it helps keep you and your family safe. It is also required by law in many states.
However, the details of commercial insurance can get a bit tricky because there are a variety of policies that might not be covered under a commercial auto insurance policy.
Some vehicle types might not be covered under a standard insurance policy, and having the wrong insurance can be a big issue when it comes to maintaining compliance with the law, or if you get in some sort of accident. It is always important to take the proper insurance precautions for your vehicles in the same manner that you take for your home or other property.
One of the biggest things to look at when it comes to commercial insurance for your car is to see who is on the registration. If a vehicle is registered through a business, commercial car insurance is needed. But if it is registered in your name, you might not always need to get insurance, especially if you own a business by yourself. You will need commercial insurance if the car is mainly being used for business purposes.
Commercial car insurance policies must be taken out if other employees at your business are driving a company car. These types of policies let you add multiple people to them so the risk of the vehicle can be properly accounted for by an insurance company. Commercial insurance is also needed for vehicles that are getting regular use. Usually, more than three times in a month-long period is a good benchmark for cars that should be covered under a commercial insurance policy.
However, there can be a few nuances when it comes to business use. Just driving to and from work is considered commuting and does not fall under needing a commercial policy. This action can be covered under a normal car insurance policy. But if the car is used to ferry other people to a job site, you should think about commercial insurance. Cars that are used to carry equipment, for towing, for newspaper delivery, or other delivery purposes should most likely be covered under a commercial policy.
Some forms of business, like a Mary Kay or Tupperware business, can be covered through a personal car insurance policy. You should let our agent know if you have a business like this so they can specifically tailor the policy for your benefit.
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Keep in mind that the above concepts are just for you to get a better idea about what to expect when it comes to a commercial car insurance policy. You should understand that situations can be very different from person to person, an activity that might seem similar on the surface could be very different in the eyes of an insurance agent.
Our experienced agents will be able to speak with you about additional policy add-ons that might be required based on the type of car or business you carry out. If you need liability coverage for equipment that is transported, this can be added on to your commercial insurance.
Do you have a question about commercial insurance? Click here to contact Davco Insurance today!
Courtesy of Cuselleration